CSBG IM No. 10 Reauthorization Amendments FY 1994

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Community Services Block Grant Program Grantees and Other Interested Parties

SUBJECT:

1994 Community Services Block Grant Reauthorization Amendments

RELATED REFERENCES:

Community Services Block Act, (Title IV of the Omnibus Budget Reconciliation Act of 1981, Public Law 97-35, as Amended)

PURPOSE:

To Transmit the Community Services Block Grant Act (CSBG) Amendments of 1994

On May 18, 1994, the President signed into law the Human Services Amendments of 1994 (P.L. 103-252) which reauthorizes the Community Services Block Grant for Fiscal Years 1995 through 1998. The short title for this reauthorization may be cited as the "Community Services Block Grant Amendments of 1994”.

The official enrolled printed version of the CSBG amendments will not be available for quite sometime; however, attached for your information is an annotated version of the CSBG Act as amended. Reauthorization changes are effective October 1, 1994. You may want to begin work to insure that State statutes, regulations, policies and procedures are revised to coincide with the reauthorization changes.

The major statutory changes are listed below:
A.State Allocation--Section 674(a)
(1) has been amended to include support for Training and Technical Assistance (T &TA) and the development of a process for determining T &TA needs.

B.Application Requirements--(1) Additional language was included in Section 675(a) to make it clear that "significant" amendments to the State plan require that a State must hold a legislative public hearing.

(2)Section 675(c) was modified. States are now required to certify that each recipient of CSBG funds will use the funds to carry out the eligible activities contained in the block grant statute.

(3)New language is added to Section 675(c) (1) to address the use of CSBG funds to support homeless individuals and migrant and seasonal farmworkers activities and services.

C.State Responsibilities-- Section 675(c) (2) (B) was modified to insure greater accountability on the part of States including the:

(i)Provisions of training and technical assistance to eligible entities;
(ii)Coordination of State-operated anti-poverty programs with services provided by eligible entities, including out posting of appropriate State or local public employees to improve access to services by State and local agencies;
(iii)State-wide coordination and communication among eligible entities;
(iv)Five percent cap on administrative expenses which including monitoring activities;
(v)Distribution of funds under this subtitle within the State to insure that funds are targeted to areas of greatest need.

D.Tripartite Board--Section 675(c) (3) is amended to require each State to certify as a part of its annual application that: (A) in the case of a community action agency or nonprofit private organization, each board will be selected by the CAA or nonprofit private organization; (B) in the case of public organization receiving funds, such organization either establish (1) a board which at least one-third of the members or persons chosen in accordance with democratic selection procedures adequate to assure that they are representatives of the poor in the area served; or (2) another mechanism specified by the State to assure low income citizen participation in the planning, administration and evaluation of projects for which such organization has been funded.

E.Termination--Section 675(c) (11) was amended to change the term "cause" to provide a termination when an eligible entity materially fails to comply with the terms of its agreement and the community action plan to provide services.

F.Community Action Plan--A new Section 675(c) (13) was added to the CSBG statute. Each eligible entity as a condition of funding is required to develop a community action plan that includes: (A) a community needs assessment; (B) a description of the service delivery system targeted to low income individuals and families in the service area; (c) a description of how linkages will be developed to fill identified gaps in services through information, referral, case management, and follow-up consultations; (D) a description of how funding under this Act will be coordinated with other public and private resources; and (E) a description of outcome measures to be used to monitor success in promoting self-sufficiency, family stability, and community revitalization.

G.OMB Cost and Accounting Standards--A new Section 675(c) (14) was added. The Office of Management and Budget cost and accounting shall apply to recipients of CSBG funds.

H.Public Inspection of Plans or Revisions--Section 675(d) (2) is amended to include plan revisions.

I.Audits--Section 675(f) is amended. States are required to make available to eligible entities a copy of the State CSBG audit.